Moody's lifts ANR Pipeline bonds from junk

Moody's Investors Service said it upgraded ANR Pipeline Co.'s senior unsecured regular bond rating to A2 from Ba1 and changed the outlook to stable from under review.

The upgrade follows El Paso Corp.'s sale of ANR and an interest in Great Lakes Gas Transmission to TransCanada Corp. (A3) for $3.4 billion, including the assumption of $488 million of ANR's debt, and reflects ANR's standalone credit quality and ownership by a higher-rated entity, the agency said.

The A2 rating for ANR is consistent with that of its new sister companies, TransCanada PipeLines Ltd., NOVA Gas Transmission Ltd. and Gas Transmission Northwest Corp., Moody's said, adding that ANR's business is stable and its credit metrics are solid, including a funds from operations-to-debt ratio in the high 20% range.

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